(a) Action prohibiting management contract. The commissioner
of education may prohibit, deny renewal of, suspend, or revoke a contract
between an open-enrollment charter school and a management company
providing management services to the school if the commissioner determines
that the management company has:
(1) failed to provide educational or related services
in compliance with the company's contractual or other legal obligation
to any open-enrollment charter school in Texas or to any other similar
school in another state;
(2) failed to protect the health, safety, or welfare
of the students enrolled at an open-enrollment charter school served
by the company;
(3) violated this subchapter or a rule adopted under
this subchapter; or
(4) otherwise failed to comply with any contractual
or other legal obligation to provide services to the school.
(b) Procedures for making determination. A determination
under subsection (a) of this section shall be made through a final
investigative report issued by the Texas Education Agency (TEA). In
making this determination:
(1) the commissioner may rely on one or more of the
following:
(A) any finding or determination made by a court or
other tribunal of competent jurisdiction, whether in Texas or in any
other state, or by the United States, if the order or judgment is
final under the rules governing such proceedings;
(B) any finding or determination made by the commissioner
under §§100.1021 of this title (relating to Revocation and
Modification of Governance of an Open-Enrollment Charter), 100.1023
of this title (relating to Intervention Based on Charter Violations),
100.1025 of this title (relating to Intervention Based on Health,
Safety, or Welfare of Students), 100.1027 of this title (relating
to Accountability Ratings and Sanctions), or 100.1031 of this title
(relating to Renewal of an Open-Enrollment Charter), if the finding
or determination is final under the rules governing such proceedings;
or
(C) any finding or determination made by a court in
an action for declaratory judgment or other action pertaining to the
commissioner's determination under this section, if the order or judgment
is final under the rules governing such proceedings; and
(2) to the extent that a finding or determination under
paragraph (1) of this subsection pertains to a charter holder or charter
school served by a management company, but does not directly pertain
to the management company, the focus shall be on the question of whether
the relevant contract for management services creates a legal duty
for the management company to provide services to the charter school
in areas of performance that are the subject of the finding or determination
against the charter holder or charter school.
(c) Review of proposed management contract. At least
30 calendar days prior to any performance or payments under the contract,
a charter holder must file a copy of each contract for management
services, and each amendment, renewal or extension thereto, with the
TEA division responsible for legal services for review under this
section.
(1) A contract for management services is unenforceable,
void, and of no force or effect until the expiration of 30 calendar
days following the date on which it is filed with the TEA division
responsible for legal services for review under this section. In addition,
performance under the contract prior to the expiration of 30 calendar
days following the date on which it is filed for review under this
section is a material charter violation.
(2) Following the expiration of 30 calendar days after
it is filed with the TEA division responsible for legal services for
review under this section, if the commissioner takes no action within
30 days, then the parties may begin performance under the contract.
(3) The absence of action by the commissioner does
not constitute a finding of compliance under this section, nor waive
or in any other manner prevent the commissioner from acting at a later
time under this section.
(d) Implementation schedule and transition.
(1) Notwithstanding this section:
(A) a copy of a contract for management services in
effect during school year 2001-2002 shall be filed with the TEA division
responsible for legal services on or before the expiration of 30 calendar
days following the effective date of this section; and
(B) if a contract for management services is timely
filed with the TEA division responsible for legal services for review
under subparagraph (A) of this paragraph, then the parties may continue
or immediately begin performance under the contract unless or until
the commissioner takes action.
(2) Notwithstanding this section, if an affected contract
for management services was executed prior to September 1, 2001, then
the management contract may continue in effect past September 1, 2001,
if each of the following conditions is met:
(A) no state funds are used to pay any amounts due
the management company under the management contract, and all such
amounts are paid from a clearly identified source of non-state funds;
and
(B) the terms of the management contract have not been
renewed, modified, or otherwise altered since September 1, 2001.
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Source Note: The provisions of this §100.1155 adopted to be effective April 18, 2002, 27 TexReg 3110; amended to be effective June 22, 2009, 34 TexReg 4119; amended to be effective September 18, 2014, 39 TexReg 7295 |